Arundhati Dnyandeo Kalane Vs ITO (ITAT Pune)
ITAT Pune Deletes ₹73.62 Lakh Section 69 Addition Based on Seized Material Belonging to Earlier Year
The Pune Bench of the Income Tax Appellate Tribunal (ITAT) decided the assessee’s appeal for AY 2013-14, arising from a reassessment under sections 147/144/144B, wherein an addition of ₹73.62 lakh was made under section 69 towards alleged unexplained investment in purchase of a flat.
At the outset, the Tribunal condoned a delay of 363 days in filing the appeal, accepting the assessee’s explanation of non-receipt of notices due to email communication issues and relying on settled principles of liberal approach in condonation of delay.
On merits, the ITAT examined the seized material and statements recorded during search in the Nandan Group case. It found that the alleged cash payment of ₹40 lakh actually pertained to FY 2010-11 (AY 2011-12) and not to the year under consideration. Further, the Tribunal noted that actual cash payment was only ₹9.80 lakh, with the remaining amounts paid through accounted cheques, duly supported by bank statements and confirmations.
As regards the balance ₹33.62 lakh, the Tribunal held that the source was fully explained through SBI housing loan disbursements and financial contributions from the assessee’s mother and brother, including funds used towards stamp duty, all of which were evidenced on record. Since the transaction related to an earlier assessment year and the sources stood explained, the addition could not be sustained for AY 2013-14.
Accordingly, the ITAT set aside the order of the CIT(A) and deleted the entire addition of ₹73.62 lakh under section 69. The appeal was partly allowed.
FULL TEXT OF THE ORDER OF ITAT PUNE
